Cybersecurity in banking: A pillar for supporting trust in global & local trade

It’s the middle of the week and we welcome you to catch up with Privy Presents, a newsletter specifically curated by the Privy team to discuss digital identity and other closely related topics, delivered to you every Wednesday.?

Cybersecurity is now an essential requirement for financial institutions, especially banks. With the volume of global and local transactions growing, the need to protect data and secure systems is more urgent than ever.?

Let’s dive more about how cybersecurity not only protects banks but also ensures the smooth flow of transactions in both global and domestic markets.?

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1. The growing cyber threat in the digital trade era?

If you frequently browse Indonesian news online, you might be familiar with the name Bjorka, an anonymous hacker known for revealing several instances of private data leaks.?

According to a report from Bjorka's account on September 18, 2024, as documented by Tempo, an Indonesian media outlet, approximately 6 million taxpayer identification numbers (NPWP) were allegedly being sold for around IDR 150 million. The leaked data reportedly includes national identification numbers (NIK), NPWP, addresses, mobile phone numbers, and email addresses.?

This is just one example of the many cyber threats that have emerged as economies and other activities become more digitalized.?

Trade transactions—both international and domestic—are increasingly conducted via digital platforms. Customer data, financial transactions, and important documents are now directly linked to banking systems. When a bank lacks robust cybersecurity measures, the risk of data breaches impacts not only the institution itself but the entire trade ecosystem. For instance, a cyberattack that disrupts a bank’s payment system can delay transactions between importers and exporters across different countries, affecting global supply chains.?

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2. Information security as a driver of trust in trade?

Trust is a fundamental component in trade, particularly when transactions are made across borders with different regulations. Confidence in the integrity and security of banking systems is a key factor in maintaining trade flow. If customers, whether individuals or corporations, are not assured that their data is safe, they will hesitate to make large transactions, especially in international trade. Therefore, banks that invest in strong security systems will earn greater trust from both international and local traders.?

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3. A competitive advantage in global markets with robust cybersecurity?

In a 2022 Bank Indonesia (BI) report, digital banking transactions in Indonesia grew by 30% year-on-year, reaching IDR 53,144 trillion. As more transactions shift online, the security of banking systems becomes a critical factor in maintaining trust, especially for businesses involved in export and import, where reliable banking infrastructure is essential for smooth operations.?

Banks that proactively strengthen their cybersecurity not only protect sensitive data but also add value for their customers. In today’s competitive global market, banks that can guarantee the security of customer data and digital transactions will gain a competitive edge. This is especially relevant for companies in the export-import business, where the stability of banking systems is crucial to running operations smoothly.?

Banks that can provide assurance that their systems are protected from potential cyber threats will be more reliable partners for businesses on both sides of the market, local and international. Investing in cybersecurity is no longer just a regulatory obligation; it is an investment in retaining market share and customer trust.?

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4. Cybersecurity as a long-term investment for trade?

Investing in cybersecurity is not a wasted cost. In the context of trade, a solid cybersecurity infrastructure ensures long-term operational stability. Banks vulnerable to cyberattacks not only risk losing customer trust but also face the potential loss of business opportunities, both locally and globally. A successful cyberattack can tarnish a bank’s reputation, leading to the loss of corporate customers involved in large cross-border transactions.?

Moreover, strong cybersecurity helps banks comply with increasingly strict international and local regulations regarding data protection. This ensures they can operate within the global trade framework without facing legal challenges or significant fines. ?

Digital solutions play a crucial role in this. For instance, at Privy, we provide comprehensive data protection and security measures, including digital signatures backed by certificates recognized by the Ministry of Communication and Information Technology, ensuring both security and compliance.?

Thanks for reading and we’ll see you next Wednesday!?

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